A perfectly competitive industry has two types of firms operating in long-run equilibrium: low-cost and high-cost producers. For the low-cost producers, LATC_L = 100/Q + 0.5Q and LMC_L = Q. For the high-cost producers, LATC_H = 100/Q and LMC_H = 2Q.
a. What's the long-run equilibrium price?
b. How much economic rent does a low-cost producer earn?

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The Answer of A perfectly competitive industry has two types of firms operating in long-run equilibrium: low-cost and high-cost producers. For the low-cost producers, LATC_L = 100/Q + 0.5Q and LMC_L = Q. For the high-cost producers, LATC_H = 100/Q and LMC_H = 2Q. a. What's the long-run equilibrium price? b. How much economic rent does a low-cost producer earn?

A Perfectly Competitive Industry Has Two Types of Firms Operating